Lesson Summary 7 Postwar Prosperity 7.5 Postwar Prosperity
Lesson Summary 7 Postwar Prosperity 7.5 Postwar Prosperity The production of military supplies halted at the end of World War II. Millions of Americans initially lost their jobs, but soon the nation experienced the longest period of economic growth in American history. President Harry Truman brought soldiers home by starting the demobilization, or the process of sending home members of the army. To calm fears about the economy, the government passed the law known as the GI Bill of Rights. The GI Bill provided veterans with unemployment benefits, financial aid for college, and loans to start businesses. Many veterans started families upon returning home. This baby boom peaked in 1957 when 4.3 million babies were born. Between 1940 and 1955, the U.S. population grew by 27 percent. Soaring demand for consumer products caused skyrocketing prices and inflation. Southern and western states, known as the Sunbelt, also experienced rapid growth. These states had appealing climates and a large number of jobs in the defense, aerospace, and electronics industries. As people moved, their political power moved with them. The Sunbelt and suburbs gained representation while urban areas in the Northeast and the Midwest lost political power. The U.S. economy was also shifting. Fewer people worked in manufacturing or farming. Employment grew in the service sector, businesses that provided services rather than manufactured goods, and information industries, businesses that provided informational services. Franchise businesses allowed companies to distribute their products and services through retail outlets owned by independent operators. Multinational corporations, companies that produced and sold their goods and services across the globe, thrived. Unions also experienced change. The AFL and the CIO joined in 1955 to form the AFL-CIO, bringing them more political clout. However, new white-collar workers generally did not join unions. The inflation rate prompted several trade unions to demand pay increases. When employers refused, millions of workers went on strike. Congress then enacted the Taft-Hartley Act to outlaw the closed shop—a workplace that hired only union members. After the election, Truman introduced the Fair Deal, a program that would strengthen New Deal reforms and establish programs such as national health insurance. Most of the Fair Deal failed in Congress. In 1952, Republican Dwight Eisenhower won the presidency by a landslide. He helped create an interstate highway system and gave financial support to education. 1.